F V 57
57. Dostner, Inc., a small manufacturing company that has in recent years experienced a decline in its profits, plans to boost its profits by outsourcing those parts of its business that independent suppliers can provide at lower cost than Dostner can itself.
Which of the following, if true, most strongly supports the prediction that Dostner's plan will achieve its goal?
A. Among the parts of its business that Dostner does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at lower cost than Dostner can.
B. Dostner itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves.
C. Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied.
D. Dostner plans to select the independent suppliers it will use on the basis of submitted bids.
E. Attending to certain tasks that Dostner performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Dostner's core business.
My choice is D.
Please explain ur choices
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[email protected]
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Treetrimmer
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Choice E:
E. Attending to certain tasks that Dostner performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Dostner's core business
Because it strengthens the plan by stating that focussing on a business area where it does not have expertise, it expends time and money to get the results inefficiently; hence outsource to be efficient.
E. Attending to certain tasks that Dostner performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Dostner's core business
Because it strengthens the plan by stating that focussing on a business area where it does not have expertise, it expends time and money to get the results inefficiently; hence outsource to be efficient.
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FightWithGMAT
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[email protected] wrote:F V 57
57. Dostner, Inc., a small manufacturing company that has in recent years experienced a decline in its profits, plans to boost its profits by outsourcing those parts of its business that independent suppliers can provide at lower cost than Dostner can itself.
Which of the following, if true, most strongly supports the prediction that Dostner's plan will achieve its goal?
A. Among the parts of its business that Dostner does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at lower cost than Dostner can.
B. Dostner itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves.
C. Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied.
D. Dostner plans to select the independent suppliers it will use on the basis of submitted bids.
E. Attending to certain tasks that Dostner performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Dostner's core business.
My choice is D.
Please explain ur choices
A and D are the contenders.
A tells us that the company is able to identify the parts of its business that it can outsource.
D tells us that suppliers are easily available who can be outsources the task to.
D Seems more like a assumption. I am confused. It is tough to select from A and D.
IMO A
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diebeatsthegmat
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E here what is the OA can you post the OA?[email protected] wrote:F V 57
57. Dostner, Inc., a small manufacturing company that has in recent years experienced a decline in its profits, plans to boost its profits by outsourcing those parts of its business that independent suppliers can provide at lower cost than Dostner can itself.
Which of the following, if true, most strongly supports the prediction that Dostner's plan will achieve its goal?
A. Among the parts of its business that Dostner does not plan to outsource are some that require standards of accuracy too high for most independent suppliers to provide at lower cost than Dostner can.
B. Dostner itself acts as an independent supplier of specialized hardware items to certain manufacturers that formerly made those items themselves.
C. Relatively few manufacturers that start as independent suppliers have been able to expand their business and become direct competitors of the companies they once supplied.
D. Dostner plans to select the independent suppliers it will use on the basis of submitted bids.
E. Attending to certain tasks that Dostner performs relatively inefficiently has taken up much of the time and effort of top managers whose time would have been better spent attending to Dostner's core business.
My choice is D.
Please explain ur choices
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abhi84v
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IMO C.
The argument talks about profit generation. Hence we have to show something that suggests that the profits are boosted.
The fact that only few manufacturers who start as independent suppliers become competition to their customers suggests that these independent companies will not on their oust Dostner from the market.
OA for this question would really help.
Failing that please PM an expert but be sure to cite the source of the question.
The argument talks about profit generation. Hence we have to show something that suggests that the profits are boosted.
The fact that only few manufacturers who start as independent suppliers become competition to their customers suggests that these independent companies will not on their oust Dostner from the market.
OA for this question would really help.
Failing that please PM an expert but be sure to cite the source of the question.
